TCS share price rises 2% ahead of December quarter earnings

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Tata Consultancy Services (TCS) share price rose nearly 2 percent in the early trade on January 8 ahead of its third quarter result which is expected today.

The country’s largest IT services exporter is expected to report strong revenue growth of more than 2.5 percent in constant currency quarter-on-quarter (QoQ) and over 3 percent growth QoQ in dollar revenue led by large deal wins in Q3 FY21.

Although margin may get impacted by wage revision.

Also Read - TCS Q3 preview: Large deal wins to boost revenue, but wage revision could impact margin

Kotak Institutional Equities believes that total contract value (TCV) of deals will be robust aided by large deals announced with Deutsche Bank (460 million euro) and Prudential ($300 million).

“For comparison, we note that TCV of deals announced in September 2020 and December 2019 quarters stood at $8.6 billion and $6 billion, respectively,” said Kotak Institutional Equities.

At 09:17 hrs, Tata Consultancy Services was quoting at Rs 3,071.40, up Rs 38.60, or 1.27 percent on the BSE.

The share touched its 52-week high Rs 3,114.45 and 52-week low Rs 1,504.40 on 06 January, 2021 and 13 March, 2020, respectively.

Currently, it is trading 1.38 percent below its 52-week high and 104.16 percent above its 52-week low.